Brazil’s foreign debt is down 14% since December, reports the National Treasury. That means it dropped from US$ 75.9 billion to US$ 65 billion.
As a result, Brazil’s foreign debt total at the moment is almost exactly the same as the country’s total foreign reserves.
The main reason for the decrease in foreign debt was a series of operations resulting in the redeeming of a total of US$ 10.2 billion in Brady bonds by the government. Taking into consideration interest payments, the country economized US$ 14.7 billion.
Brazilian domestic debt increased US$ 11.88 billion in February, reaching a record high of US$ 474 billion. Debt titles, issued by the National Treasury, went up 2.6% in February, when compared with January, as announced by the Coordinator of Operations of the Treasury Public Debt, Paulo Valle.
In Valle’s opinion, this was an ordinary result, because the Annual Financing Plan (PAF) estimates indebtedness of up to US$ 564 billion by the end of the year.
The increase, according to him, results from title issuance being superior to redemptions (US$ 6.96 billion), and to expenses (US$ 4.91 billion).